Alphabet Inc

ITEM 1A.RISK FACTORS

Our operations and financial results are subject to various risks and uncertainties, including tbut not limited to those described in Part I, Item 1A, "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2023, as updated in our subsequent Quarterly Reports on Form 10-Q for the quarter ended March 31, 2024, , which could adversely affect harm our business, reputation, financial condition, results of oand operations, cash flowng results, and taffect the trading price of our sClass A and Class C stock. Below are material changes to our risk factors since our Quarterly Report on Form 10-Q for the quarter ended March 31June 30, 2024.

We generate a significant portare and may continue to be subject to claims, lawsuits, regulatory and government inquiries and investigations, enforcement action of our revenues from advertising. Reduced spending by advertisers, consent orders, and other forms of regulatory scrutiny and legal liability, including competition matters, that could harm our business, reputation, financial condition, and operating results.

We are subject to claims, lawsuits, regulatory and government inquiries and investigations, other proceedings, a loss of partners, or new and orders involving competition, intellectual property, data privacy and security, tax and related compliance, labor and existing technologimployment, commercial disputes, content generated by our users, goods and services that block ads online and/or affect our ability to customize ads could harm ooffered by advertisers or publishers using our platforms, personal injury, and other matters.

The DOJ, various U.S. states, and other plaintiffs have filed, and may continue to file in the future, several antitrust lawsuits about various aspects of our business.

We generated more than 75% o, including our advertising technologies and practices, the operation and distribution of Google Search, and the operation and distribution of total revenues from online adhe Android operating system and Play Store.

For example, the DOJ and a number of state Attorneys General filed a lawsuit alleging that Google violated antitrust laws relating to Search and Search advertising , and in August 2023. Many of our advertisers, companies that distribute4, the U.S. District Court for the District of Columbia ruled that Google violated such antitrust laws. The Court is holding a separate proceeding to determine remedies, which could include alterations to our products and services, digit and our business models and operations, including structural publisherremedies, and content providers can terminate/or our distribution arrangements, among other changes. While we plan to appeal, their contracts with us at any time. These partners re can be no assurance that our appeal will succeed, or that we will be able to change or decrease the severity of any remedies that may not cobe ordered, and any or all of these potentinue to doal remedies could harm our business with us if we do not create mor, reputation, financial condition, and operating results.

Also, in December 2023, a California jury delivered a verdict in Epic Games v. Google finding that Google value (such as increasiolated antitrust laws related numbers of users or customers, new sales leads, increased brand awareness, to Google Play's business. The presiding judge issued a remedies decision on October 7, 2024 that ordered a variety of alterations to our business models and operations and contractual agreements for more effectiAndroid and Google Play. We are appealing and have monetizfiled a motion to pause the implementation) than of some of the remedies pending their available alternatives. Changes to  appeal, but there can be no assurance that we will be successful in our appeal or in our advertising policiefforts to pause the implementation of the remedies and data privacy practipending the appeal. If we are unsucces, such as our initiatives relatedsful, we could face significant expenses to third-partyimplement the remedies, and such costs and alterations cookies, including ouuld harm our business, reputation, financial condition, and operating results.

Other recent announcement to move from phasing out all third-partgulatory agencies in the U.S. and around the world, including competition enforcers, consumer protection agencies, and data protection authorities, have challenged and may cookiesntinue to a proposed user chochallenge our business practice model (which remains subject tos and compliance with laws and regulations. We are conoperatinuing discussig with these investigations with regulators), as well as changes to otand defending litigation or appealing decisions wher companies advertising and/or datae appropriate.

We are also subject to a variety of claims including product warranty, privacy praoduct liability, and consumer protectices have in on claims related to product defects, among othe pastr litigation, and we may in the future, affealso be subject the advertising that we are able to provide. In addio claims involving health and safety, hazardous materials usage, other environmental effects, AI training, development, and commercialization, technologies or service disruptions or failures. Claims have been developed that make customized ads more difficult, or that block brought, and we expect will continue to be brought, against us for defamation, negligence, breaches of contract, patent, copyright and trademark infringement, unfair competition, unlawful activity, torts, privacy rights violations, fraud, or othe display of ads altoger legal theories based on ther, nature and some providers content of information available on or via our services, the design and effect of onlineur products and services have, or due to our involvement integrated technologies that hosting, transmitting, marketing, branding, or providing access to could pontentially impair the created by third parties.

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Various availabilitylaws, regulations, investigations, enforcement lawsuits, and funregulatory actionality ofs have involved in the past, and may in third-party digital advertising. Failinge future result in substantial fines and penalties, injunctive relief, ongoing monitoring and auditing obligations, changes to our provide suducts and services, alterations to our business models and operior value or delivations, including divestiture, and collateral related civil litigation or other advertisements effectively and competise consequences. Any of these legal proceedings could also result in legal costs, diversion of management resources, and negatively c publicity, all of which could harm our business, reputation, financial condition, and operating results.

In addition, ex 

Estimating liabilities for our penditures by advertisers tenng proceedings is a complex, fact-specific, and speculative process that requires significant judgment, and to correlhe amounts we are ultimate with overall economic conditionly liable for may be less than or exceed our estimates. Adverse macroeconomic conditionThe resolution of one or more such proceedings have affecs resulted in, and may in the future affect, the demand for advertising, resuresult in, additional substantial fines, penaltinges, in fluctuatjunctions in the amounts our advertisers spend on advertising, which c, and other sanctions that could harm our business, reputation, financial condition, and operating results.

For additional information about the ongoing material legal proceedings to which we are subject, see Legal Proceedings in Part II, Item 1 of this Quarterly Report on Form 10-Q.